THE PATH TO THE INTRODUCTION OF AUTOMATED FUNDS SEIZURE IN UKRAINE: INTERNATIONAL EXPERIENCE AND PROSPECTS FOR ITS IMPLEMENTATION

Abstract

This article addresses the procedure of the automated seizure of a debtor’s funds in Ukraine in the process of enforcement of judgements of all categories. Similar mechanisms provided for in European countries are also studied for the sake of comparison and with a view to using the best international practices to improve Ukrainian law. One of the core drawbacks of the existing mechanism is considered to be the lack of a consolidated register of individuals’ bank accounts. This hinders the effective detection of the debtor’s account and may lead to the duplication of funds seizure whenever a person holds two or more accounts in different financial institutions. The legal framework for the procedure is aimed at striking a balance between the interests of the creditors and the debtor. In this vein, there are several ways to safeguard the debtor from disproportionate burden. According to existing rules, some of categories of income cannot be seized. However, it might be more effective to set a minimum amount of funds that must be safe from seizure. The other flaw in the operation of the system is the lack of instant communication between enforcement officers and banking institutions.

Keywords

• foreclosure on the debtor’s non-cash funds
• identification of the debtor’s bank accounts
• automated seizure of funds
• forced write-off of funds
• an executor